COMPLIANCEHANDBOOK

P Income TaxP Companies ActP Service TaxP LLPP ExciseP Other Compliances

Salient Features

NJPAdvisors Private Limited

F.Y. 2016-17 A.Y. 2017-18

ACT with Excellence & Integrity

COMPLIANCEHANDBOOK

P Income TaxP Companies ActP Service TaxP LLPP ExciseP Other Compliances

NJPAdvisors Private Limited

F.Y. 2016-17A.Y. 2017-18

ACT with Excellence & Integrity

www.njpadvisors.comwww.sensysindia.com

© NJP Advisors Pvt. Ltd.

Price : ` 100/-

First Edition : Jun 2012 : 2,000 copies

Second Edition : May 2013 : 5,000 copies

Third Edition : Aug 2014 : 5,000 copies

Fourth Edition : May 2015 : 5,000 copies

Fifth Edition : May 2016 : 5,000 copies

§No Part of this publication may be reproduced, copied or transmitted in any form or by any form or means without the express written permission of the author or publisher.

§Neither the author nor the publisher will be responsible for the interpretation and/or use of the information contained herein and/or for the result of any action taken on the basis of this work, whether directly or indirectly for any error, omission or inaccuracy or otherwise, to any person whether a buyer of this publication or not.

§Subject to Ahmedabad Jurisdiction

Published by

NJP Advisors Private Limited

804, Mauryansh Elanza,

B/s. Parekhs Hospital, Shyamal Cross Roads,

Ahmedabad 380 015, Gujarat, India.

Phone: (+91) 79 - 2675 2544/45

PREFACE

ACKNOWLEDGEMENT

info@njpadvisors.com

India is a land of laws. We have to comply with various Acts, Laws, Rules

and Regulations in a normal course of business such as Income Tax,

Companies Act 2013, Service Tax, Limited liability Partnership Regulations,

Partnership Act, Wealth Tax, Value Added Tax (VAT), XBRL etc.

While carrying out day to day business operations, it is difficult to refer

different books for various laws, which makes compliance more

complicated. Hence, there is a need to have all important rules and

regulations at one place, in easily readable form.

This booklet aims to provide practical aid to the compliance challenges

faced by professionals in practice and industry and summarises all

important provisions of various laws by using different charts, schedules,

tables and useful notes.

We are thankful to our senior advisor CA. Naresh Patel for his

contribution to Income Tax. We are also thankful to CA. Jigar Patel,

CA. Chintan Patel, CA. Reecha Patel and CA. Palak Patel for their

technical contribution in other areas of the booklet.

We are also thankful to CA. Sajan Rathod, Anil Somani, Arpita Prajapati

and Sunny Keshvani for their contributions in compilation and printing of

this booklet.

We are thankful to our Technology Partner Sensys Technologies Pvt. Ltd.

for its support in publication of this booklet.

We hope that this booklet will be useful to our valuable readers, also we

solicit and appreciate your views, suggestions and feedbacks for

improvement of future editions.

20th May 2016 NJP Advisors Pvt. Ltd. Ahmedabad

I N D E X

1

1 Income Tax

2 Companies Act

3 Limited Liability Partnership

1.1 Tax Rates ...........………………………………………….. 3

1.2 Advance Tax ....................................................………… 4

1.3 TDS Rate Chart ....………..………………………………. 5

1.4 TCS Rate Chart .……………....…………………………. 5

1.5 Cost of Inflation Index...........................…………………. 6

1.6 Capital Gain Rates .......................………………………. 6

1.7 Capital Gain Exemption ................………………………. 7

1.8 Remuneration to Partners ………......….………………. 7

1.9 Interest.............…………………………...........…............ 8

1.10 Appeal Fees ……………...….....…………………………. 8

1.11 Tax Audit Requirements ..………………....……………… 9

1.12 Penalty…………………………………......………………. 9

1.13 Provisions Relating to Gift………………....……………... 11

1.14 Deductions (section 80 C- 80 U)....…………………....... 12

1.15 Carry forward & Set off of Losses ....……………………. 13

1.16 E Filing of Returns …………....…………………………... 14

1.17 Transfer Pricing ………....………………………………… 14

1.18 TDS Rates on Payment to NRI...………………………… 15

2.1 Incorporation Related Forms…....…………………......... 16

2.2 Other Forms ………...…………………………………….. 16

2.3 Registration Fees…....…………………………………….. 17

2.4 Additional Fees for Late Filing…....…………………....... 18

2.5 Depreciation Chart ………….......………………………... 18

3.1 Incorporation Related Forms.......………………………... 19

3.2 Other Forms………………....……………………………... 19

3.3 Filing Fees………………................................................. 19

2

4 Service Tax

5 Excise

6 Other Compliance

7 Useful Websites

8 Compliance Calendar

4.1 Exemption & Tax Rates.......………………………………. 20

4.2 Service Tax Registration Forms........…………………..… 20

4.3 Payment of Service Tax using Challan GAR-7........……. 20

4.4 Interest Rates for Delayed Payment.....…………………. 21

4.5 Half Yearly Return.......…………………………………….. 21

4.6 Penalties.......……………………………………………….. 21

5.1 Basic Rate of Excise....................................................... 22

5.2 Payment of Excise......................................................... 22

5.3 Various Forms for Returns.............................................. 22

6.1 PF ESIC Compliance...................................................... 23

6.2 XBRL............................................................................... 23

....……………………………………............... 24

...………………………….................... 25

Taxes should be collected the way a honey bee collects the

honey from the flower. The flower is willing to give up its

sweetness, but the bee also takes care that only a little is

taken without hurting the flower.- Chanakya

Member is an Member is a Company Member is a CompanyIndividual / HUF Individual/HUFMember is an

Nil Up to 2.5 Up to 3 Up to 5# #10% 2.5 to 5 3 to 5 —2016-17 /

2017-18 20% 5 to 10 5 to 10 5 to 10

30% Above 10 Above 10 Above 10

1. INCOME TAX

1.1 Tax Rates:

1.1.1 For Individuals & HUF

( In Lacs)`

1.1.2 For Co-Operative Societies:

1.1.3 For AOP and BOI:

A.Y. Amount Rate of Tax*

2016-17 & 2017-18

Up to 10,000` 10%

From 10,001 to 20,000` ` 20%

More than 20,000` 30%

Super senior citizen***

A.Y. Rate* General/NRI Senior citizen**

* 1. Exclusive of education cess @ 3% 2. Exclusive of surcharge 12% for A.Y. 2016-17 and @ 15% for A.Y 2017-18 whose total

income exceeds ` 1 crore.In addition to above additional tax at the rate of 10% of gross amount of dividend shall be paid by a resident individual, HUF or a firm, if dividend received by them from a domestic company exceeds ` 10 lakhs per annum.

** Resident individual of 60 years till 79 years. *** Resident individual of 80 years and above at any time during the year.

# Tax Credit as per Sec. 87 A will be provided to First Bracket Resident Individual i.e. Net Income < ̀ 5,00,000. Creditwill be: 1. Equal to the Actual Tax Payable or ̀ 2000 whichever less for A.Y. 2016-172. Equal to the Actual Tax Payable or ̀ 5000 whichever less for A.Y. 2017-18

* 1. Exclusive of education cess @ 3%

2. Exclusive of surcharge @ 12% whose total income exceeds ` 1 crore.

* Maximum Marginal Rate is 34.61% for A.Y. 2016-17

3

Where income of AOP/BOI is taxable at rate higher than the MMR then,the Total Income of AOP/BOI will be taxed at such

higher rate.

(i.e. in case of Foreign Companies)

Shares of Members are Determinate Share of Member are Indeterminate

When None of the member

has income in excess Basic

exemption limit.

AOP/BOI will be taxed at the

slab rates specified in

1.1.1

When any of the member

have income in Excess of Basic

Exemption limit.

AOP/BOI will be taxed at the

Maximum Marginal Rate

of 35.54%*

When total income of member company is taxable at rate higher than the Maximum Marginal Rates (i.e. in case of Foreign Companies)

Tax will be charged on that portion of AOP / BOI at such higher rate.

Tax will be charged on

the Total income of

AOP/BOI at MMR of 35.54%*

15th June Up to 15%

15th Sep. Up to 45%

15th Dec. Up to75%

15th Mar. 100%

Due Date Company / Other than Company

1.2 Advance Tax:

Notes:

`1. Advance Tax is not Applicable if Liability to pay Advance Tax is less than

10,000.2. An assessee who gets his books audited u/s 44 AD is required to pay

advance tax of the whole amount in one instalment on or before 15th March of the financial year.(Applicable w.e.f. 01.06.2016)

3. Sr. Citizen who does not have Income from Business and Profession is not required to pay Advance Tax.

Other Assesses Income

Tax Rate MAT Rate

Dividend Distribution Tax Rate*

Domestic Companies 30% # 18.5 % 20.903%

Foreign Companies 40% 18.5 % —

Firms/ LLP/ Local Autho. 30% Note-1 —

* Inclusive of Education Cess @ 3% & Surcharge of 15% of Income tax.

# Tax Rate is 29% if turnover or gross receipts of the company doesn't exceed ` 5 Crore

Notes:1. Alternate Minimum Tax (AMT) is applicable to all persons (other than

companies) claiming profit linked deductions under chapter VI-A (80-H to 80RRB excluding 80P) and Section 10AA, provided the adjusted income exceeds 20 lacs.

2. Marginal Relief is available in case income exceeds 1 Crore or 10 Crore, as the case may be, to the extent marginal tax exceeds marginal income.

`

` `

Applicability of Surcharge & Education Cess:

4

Domestic 7% 1 cr to 10 cr

Surcharge Foreign 2%Income

Domestic 12%> 10 cr

Foreign 5%Education Cess 3%

< 1 cr All NIL

Total

`

` `

`

Particulars Applicable to Companies A.Y.

2016-17 / 2017-18

1.3 TDS Rate Chart:TDS is applicable to any person, other than an individual or a HUF not subject to audit under section 44AB in the immediately preceding year.

* If total or part of the amount is received in Cash.

1.4 TCS Rate Chart:No. Rate (%)Nature of Goods

1. Scrap, Alcoholic liquor for human Consumption 1%2. Tendu leaves 5%3. Forest Products incl. Timber but excl. Tendu leaves 2.5%4. Parking lot, Toll Plaza, Mining 2%5. Jewellery (If amount > ` 5 Lacs) 1%*6. Bullion (If amount > ` 2 Lacs) 1%*7. Purchase of Motor Vehicle (If value > ` 10 Lacs) 1%8.

` cPurchase of any good or service, if value thereof exceeds

2 La s and the payment thereof is made in cash. 1%

Interest by bank/co op society/ post office 10,000 10%194A

Interest by others ` 5,000 10%

Payment to contractor / Single Transaction ` 30,000 2%*

sub contractor/ Aggregate During FY ` 1,00,000## 2%*194C

Advertisement / TDS not applicableTransporter

194D Insurance commission ## ` 15,000 5%

194H Commission/ brokerage ## ` 15,000 5%

Plant & Machinery, Equipment 2%194I RENT ` 1,80,000 ^

Land & Build., Furniture & Fixture 10%Professional fees ` 30,000 10%Royalties ` 30,000 10%

194J Technical Fees ` 30,000 10%Directors Remuneration. Nil 10%Compensation on acquisition of immovable

194LA ` 2,00,000 10%property (other than agricultural land)

Purchase of Immovable Properties # ` 50,00,000194IA 1%(other than agriculture land) (from 1.6.13)

`

Transporter with PAN

Sec. Nature Of Payment Description ThresholdAmount

Rate%

As per Normal Slab Rates after192B** Salary providing Deductions of

Chapter VI A(Other than Government Employee)

* Rate 1% in case of Deductee Individual / HUF.** Person responsible for making payment for calculation of TDS required to obtain the evidence

or proof or particulars of prescribed claims (including claims of set-off of loss) from deductee.# TAN is not compulsory for deductions u/s 194IA^ No TDS even if payment exceeds `1,80,000 provided landlord furnishes a self- declaration in

prescribed Form. No. 15G/15H to the payer (effective from 1st June, 2016) ## Effective from 1st June, 2016.Note : If No PAN or invalid PAN, TDS rate is 20%. Declaration of Non Filing of TDS statement is

mandatory in case of NIL TDS Returns.

Transporter owning ten or less than ten goods carriage with PAN

5 5

1.6 Capital Gain Rates:

Sale transaction of equity share / unit of an equity oriented fund 15% Exempt which are covered under STTSale Transaction Other Than Above mentioned:Individuals Progressive(Resident & Non Resident) Slab Rates

20% with indexation orFirms including LLP (Resident & 30% 10% without IndexationNon Residents)

for units/ Zero CouponDomestic Companies 30% bonds w.e is beneficial Other Foreign Companies 40%

to the assesseeLocal Authority 30%Progressive

Co-Operative SocietySlab Rates

Particulars Capital Gain Tax Rates

Short-term Long-term

Notes:

1. Unlisted shares of company would be treated as short-term capital asset if it is held for a period of 24 months or less immediately preceding the date of its transfer.

2. Long term capital on sale of listed mutual funds (other than equity oriented funds) will be taxed at the flat rate of 20%.

3. Exemption from tax on Long term capital gain on sale of residential property or any other asset is allowed on re-investment in only one residential house in India.

Financial Year Financial Year Financial YearIndex Index Index

1.5 Cost of Inflation Index:

1981-82 1001982-83 109 1994-95 259 2006-07 5191983-84 116 1995-96 281 2007-08 5511984-85 125 1996-97 305 2008-09 5821985-86 133 1997-98 331 2009-10 6321986-87 140 1998-99 351 2010-11 7111987-88 150 1999-00 389 2011-12 7851988-89 161 2000-01 406 2012-13 8521989-90 172 2001-02 426 2013-14 9391990-91 182 2002-03 447 2014-15 10241991-92 199 2003-04 463 2015-16 10811992-93 223 2004-05 480

1993-94 244 2005-06 497

6 6

Actual amountinvested in new asset or

capital gain whichever is less

Capital Investment in X

gain New Asset

Net Sale Consideration

Investment in agriculture land or capital gain,

whichever is less

Max. Investment in

the yearof transfer of original assetand in subsequent financial

year should not exceed 50 Lacs`

54.Indi. / HUF

54F.Indi./HUF

54B.Ind./HUF

54ECAny Assesses

Residential House

Property

Long Term Asset

(other than Residential property)

Agriculture Land

Long Term Capital Asset

Residential House

Property

Residential House

Property

Agriculture Land

NHAI or REC

Bonds

Purchase1 year

before or 2 years after

sale

ConstructionCompleted

within 3 years from

sale

Purchased within 2 years of

sale

Invested within 6

months of sale

Sec. Assets

Sold

Assets

PurchasedTime Limit Amount of Exemption

Note:

Exemption u/s 54/54F will be available only if investment is made in only one residential house situated in India.

Note:

If partnership firm is computing its business income on presumptive basis, salary and interest paid to its partners shall not be allowed as deduction from such presumptive income.

1.7 Capital Gain – Exemption:

Book Profit Amount deductable

< 0 (Loss) Maximum ` 1,50,000

0 - ` 3,00,000 ` 1,50,000 or 90% of book profit, whichever is more

> ` 3,00,000 90% of 3,00,000 and 60% of balance book profit

1.8 Partners Remuneration u/s 40(b) Business & Profession:

7

“The hardest thing in the world to understand is theIncome Tax.”

- Albert Einstein

(A) Income Tax Return

Delay in From Due Date to Date of234A

submission submission of return

From Due Date to Date ofNon-submission 234A completion of assessment 1%

u/s. 144/147

(B) Advance Tax

Failure to pay From 1st April of A.Y. to90% of assessed 234B completion of 1% tax assessment

Deferring From Due Date to Due date234C 1%

Advance tax of next instalment

(C) TDS

From required date for Failure to deduct 201(1A) deduction to actual date of 1%

deduction

Failure to deposit From actual date of deduction201(1A) 1.5%

in time to actual date of deposit

1%

8

1.9 Interest Rates under Income Tax:

Rate (per month or part of it)

Description Sec. Period

CIT(A) u/s 249

Particulars ITAT u/s 253

(A) Difference between Income as assessed by AO and returned by assessee:

Upto ` 1 lacs ` 250 ` 500

` 1 - ` 2 lacs ` 500 ` 1500

1% of assessed income orMore than ` 2 lacs ` 1000 ` 10,000

whichever is less

(B) Any matter other thandifference in assessed ` 250 ` 500amount

(C) Revision Petition to CIT u/s 264 fee ` 500

1.10 Appeal Fees:

1.11 Tax Audit Requirements:

Parti-culars

Business Profession

Audit Not Required

Audit Required

Audit Required

Audit Not Required

Gross44AB Turnover is less than Gross Turnover is Receipt is Gross Receipts

or equal to 1 Crore more than 1 Crore less than or is more than equal to ` 50 lacs` 50 Lacs

(i) Total gross (a) Gross receipt is receipt is

(i) Turnover is less then (a) Profit is less than less then less then44AD / or equal to ` 2 crore and 8% of turnover & or equal to 50% and

44ADA# (ii) Net profit is 8% of (b) Total income ` 50 Lacs & (b) Totalturnover or more exceeds taxable (ii)50% of total Income

limit. gross exceedsreceipts taxable

limit.

44AE Not more than 10 vehicles* 10 or More than N.A. N.A.10 vehicles

` `

* Income Chargeable to Tax : ` 7,500 per month or part of a month for each goods carriage or the amount claimed to be actually earned by assessee, whichever is higher.

# If assessee declares profit on presumptive basis for any previous year but does not declare profit on presumptive basis for subsequent five years, he shall not be eligible to claim the benefit of presumptive taxation again for next five years subsequent to the year in which the profit has not been declared in accordance with Section 44AD.

Note : 1. Failure to maintain Books u/s 44AA will attract penalty of ` 25,000.

2. Failure to get accounts audited or furnish Tax Audit Report as required u/s 44AB will attract penalty of 0.5% of total Sales/Turnover/Gross Receipt or ̀ 1,50,000 whichever is less.

3. TDS to be deducted by an Individual/HUF in respect of payments made if the books are Audited last year u/s 44AB.

4 As per rule 114B, mandatory to quote PAN in case of purchase/sale of any goods or services exceeding ̀ 2,00,000 per transaction.

Nature of Default Penalty

Failure to pay tax; i.e., non-payment of tax required by notice u/s. 156 (demand notice). S:221(1)

Noncompliance with notice u/s. 142(1), 143(2), 115WD (2), 115WE (2) or non compliance with directions issued u/s. 142(2A) as required by assessing officer. S:271(1)(b)

Concealment of the particulars of income, or furnishing inaccurate particulars thereof. S:271(1)(c)

Case of partnership firm, if profits are not distributed as per partnership deed and thereby any partner returned his income below the real income. S:271(4)

Failure to furnish Return of Income asked by AO under S:139(1) before the end of the relevant Asst. Year. S:271F

Failure to file Annual Information Return S. 271FA

Undisclosed Income in course of search u/s.132. S:271AAB (w.e.f. 01/07/2012)

(Penalty as % of undisclosed income)

Unexplained Investment, Expenditure or cash credits

Contravention of the provisions of S. 269SS/269T, by taking or accepting / repayment of any loan or deposit otherwise than by ways specified therein.

Equal to amount of tax in arrears (including interest u/s 220) (Max)

` 10,000 for each failure

Min 100 % & Max 300 % of tax evaded

150% of tax evaded (Max)

Rs. 5,000

As per sub sec-2, Rs.100/- per day and as per sub sec-5, Rs. 200/- per day, till failure continues.

·If taxpayer admits - 10%

·If taxpayer not admit but declares in ITR- 20%

·Any other Case Min. 30%, Max 90%

1.12 Penalty:

9

Failure to pay tax; i.e., non-payment of tax required by notice u/s. 156(demand notice). S:221(1)

Noncompliance with notice u/s. 142(1), 143(2), 115WD (2), 115WE (2) or non compliance with directions issued u/s. 142(2A) as required by assessing officer. S:271(1)(b)

Concealment of the particulars of income, or furnishing inaccurate particulars thereof. S:271(1)(c)

Case of partnership firm, if profits are not distributed as per partnership deed and thereby any partner returned his income below the real income. S:271(4)

Failure to furnish Return of Income asked by AO under S:139(1) before the end of the relevant Asst. Year. S:271F

Failure to file Annual Information Return S. 271FA

Undisclosed Income in course of search u/s.132. S:271AAB (w.e.f. 01/07/2012)

(Penalty as % of undisclosed income)

Contravention of the provisions of S. 269SS/269T, by taking or accepting / repayment of any loan or deposit or specified sum/advance otherwise than by ways specified therein. S:271 D/E

Failure to answer questions, sign statements, furnish information, returns or statements, allow inspections* etc. S:272A

Failure to furnish information specified u/s 195(6) for any payment made to non residents, whether taxable or not S:271-I

Under-reported income - S.270A (7)

Misreported income - S.270A (8)

Equal to amount of tax in arrears (including interest u/s 220) (Max)

Rs. 10,000 for each failure

Min 100 % & Max 300 % of tax evaded

150% of tax evaded (Max)

` 5,000

As per sub sec-2, ` 100/- per day and as per sub sec-5, ` 500/- per day, till failure continues.

·If taxpayer admits - 10% ·If taxpayer not admit but

declares in ITR - 20% ·Any other Case Min. 30%,

Max 90%

Equal to the amount of loan or deposit so taken or accepted / repaid

` 100 for every failure day.

` 1,00,000 for failure to furnish/furnishing inaccurate information. (from 1.6.15)

50% of tax payable

200% of tax payable

Nature of Default Penalty

1.12 Penalty (contd.)

Failure to deduct the whole or part of the tax as required by Chapter XVII-B (u/s. 192 to 196D) or failure to pay the whole or part of tax u/s.115-O.S: 271C

Failure to Furnish TDS certificate u/s. 203

Failure to file TDS Statement

Equal to the amount failed to be deducted

` 100 for every failure day or TDS amount, whichever is less

` 200 per day till default continues, Max. fees should not exceed tax deductable.

Penalty relating to TDS / TCS

10

W.E.F. Recipient Nature of Receipt Taxable Amt.

consideration > ` 50,000 Received

Immovable property without1st Stamp Value

Individual / consideration > ` 50,000October,

HUF* Other property without 2009 FMV

consideration: FMV > ` 50,000

Immovable/Other property FMV Excessless consideration > ` 50,000 Amount

Property being shares withoutFMV1st

Company / consideration: FMV > ` 50,000June,

Firm** Property being shares FMV Excess2010

less consideration > ` 50,000 Amount

Any sum of money without Entire Amount

Effect of Gift on total income of the recipient:

1.13 Provisions Relating To Gift:

Where any sum of money is received without consideration, by an individual or a Hindu undivided family, the aggregate value of which exceeds fifty thousand rupees in previous year from any person or persons, the whole of the aggregate value of such sum is taxable.

No. Money Received From

1 From any relative. Relative is defined to include following:a) spouse of the individual;b) brother or sister of the individualc) brother or sister of the spouse of the individuald) brother or sister of either of the parents of the individual;e) any lineal ascendant or descendant of the individual;f) any lineal ascendant/descendant of the spouse of the individual;g) spouse of the person referred above from (b) to (f)

2 On the occasion of the marriage of the individual; or

3 Under a Will or by way of inheritance; or

4 In contemplation of death of the payer; or

5 From any local authority; or

6 From any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

7 From any trust or institution registered under section 12AA

* Excluding gifts received under any of the above 7 circumstances.

** Excluding companies in which public is substantially interested.

11

LIC*/NSC/PPF/ULIP/ ELSS MF/ Bank FDR

80C (5 yrs)/ Home Loan Repayment/EPF/School Fees/Sukanya

` Samriddhi Scheme

80CCC Pension Fund IndividualContribution to Employed / Self

80CCD Pension Scheme*** employed

Mediclaim (payment ` 25,000**(Gen) & Individual^/mode other than cash) ` 30,000**(Sr.Citizen) HUF^

#80D Preventive Health` 5,000 Individual / HUFCheck-up

Interest on Loan for Interest paid every80E Individual

Higher Education year for 8 years

Deduction of Interest ` 50,000 80EE Individualon Housing Loan (Note 1)

100%/50% of donation80G Donation or 10% of adjusted All

GTI w.e. is less

80GGB/ Contribution given to Any sum contributed Indian Companies/80GGC political parties (Other than Cash) Individual, HUF

Interest on Deposits in80TTA ` 10,000 Individual/ HUFSavings Account

Individual*/ HUF*

1,50,000

1.14 Deductions:

Section Particulars Amount Persons Covered

Notes:

* Deduction of LIC Premium paid is available to Individual only if it is paid for Individual himself, spouse, or any child of such individual and in case of HUF, any member thereof.

^ Deduction of Mediclaim paid is available to individual only if it is paid for Individual himself, spouse, dependent children of such individual or parents of such individual and in case of HUF, any member thereof.

*** Subject to maximum 10% of Salary of Employee.

** Additional deduction for any payment of Mediclaim for parents ` 25,000 (` 30,000 if parents are senior citizen).

12

#`

.

Very Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of 30,000 towards medical expenditures

1.14 Deductions (contd.)

1. House Property All heads 8 Years

2. Speculation Speculation 4 Years

3. Unabsorbed Depreciation / Any Income No LimitCap Exp on Scientific

(Other Than Salary)Research / Family Plan

All heads except 4. Other Business Losses 8 Years“Salaries”

Short Term and Long 5. Short Term Capital Loss 8 YearsTerm Capital Gains

6. Long Term Capital Loss Long Term Capital Gain 8 Years

7. Owning / Maintaining Owning / Maintaining 4 YearsHorse races Horse races

8. Specified Business Specified Business No Limitu/s. 35AD u/s. 35AD

1.15 Carry forward and Set off of Losses:

No. Type of Loss Set off Under/Against*Carried

Forward for

* No loss can be set off against winning from lotteries, crossword puzzles, races including horse race, card games and any sort of receipt from gambling or betting of any form or nature.

* For Loss to be carried forward for future periods, Return of loss must be filed in time.

Note:- 1

1 Year of Loan Sanctioned FY 2016-17 only

2 Amount of Loan Sanctioned Not more than ` 35 Lacs

3 Value of Residential Flat Not more than ` 50 Lacs

4 Should not own any Residential House Property

Sr. No. Conditions to be satisfied by the Assessee for Sec 80EE

The only thing that hurts more than paying an income tax is

not having to pay an income tax.- Thomas R Dewar

13

1. An Individual or HUF whose total income in previous year exceeds ` 5 Lacs.

2. An Individual or HUF being resident having assets located outside India or signing authority outside India

3. A person claiming relief u/s 90 or 90A or deduction u/s 91 of the IT Act

4. A person claiming refund in Income Tax Return.

Sr. No. Method Abbreviation

1 Comparable Uncontrolled Price Method CUPM

2 Resale Price Method RPM

3 Cost Plus Method CPM

4 Profit Split Method PSM

5 Transaction Net Margin Method TNMM

There are 5 methods specified to calculate Arms Length Price:

1.17 Transfer Pricing Regulations:

lTransfer Pricing Provisions are intended to introduce a uniform and internationally accepted mechanism of determining reasonable, fair and equitable profits and tax in India in the case of such multinational enterprises.

lRegulations relating to Transfer Pricing are applicable to the all enterprises that enter into an 'International Transaction' with an 'Associated Enterprise'.

lAs per Transfer Pricing Regulations, any income arising from International Transaction between Associated Enterprises has to be computed having regard to Arm's Length Price.

1.16 E-Filing of Returns:

Compulsory E-Filing of Returns

Compulsory E-filing of Return with Digital Signature Only.

1. An individual or HUF or Firm who is required to get their books of account audited u/s. 44AB/44AD/44AE.

2. All companies

Note: The threshold limit for specified domestic transactions of ̀ 20 crore from the A.Y. 2016-17.

Note:1.Section 139(4) (i.e. Belated Return) provides that assessee may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, Whichever is earlier.2. The return filed u/s 139(5) Provides that if assessee furnish return u/s 139(1) or 139(4) or 142(1), discovers any omission or any wrong statement therein, he may furnish revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier

14

Particulars

Nature of Payment

Penalty

Tax Rate

Sr. No.

Section

Failure to Maintain or Furnish 2% of the value of 1Prescribed Documentation International Transaction

Failure to Furnish2 ` 100,000

Accountant's Report

1 Concealment of Income 100% to 300% of Tax Evaded

192 Salary As per Slab Rate

115O Dividend (provided DDT is paid) Exempt

194EE Payment in respect of Deposits under NSS 20 %

194LD Interest on Rupee Dominated Bond 5 %

195(e) Interest on Loans given in foreign Currency to20 %

Indian Concern or Govt. of India

Interest from Bank (NRO Saving or FD Account)

Interest from Others

195(i) Rent House Property or Other Rent 30 %

Commission/Brokerage or any other income

Capital Gains

Equity Long Term Capital Gain (>12 months) ExemptOriented

(STTShort Term Capital Gain (<12 months) 15 %

Appli.)

Other Listed 20 %*Long Term Capital Gain (>36 months)#than Unlisted 10 %**

Equity Short Term Capital Gain (<36 months) 30 %

1. Surcharge @ 12% for A.Y. 2016-17 and @ 15% for A.Y. 2017-18 whose total income exceeds ̀ 1 Crore.

2. Education Cess @ 3%. * After providing Indexation.** Without any Indexation.# If Sold before 11.07.2014 and held greater than 12 months then it would be

LTCG then rates would be 20 % with indexation or 10 % without indexation whichever is less.

and Secondary Education Cess @ 1%.

Penalties have been provided for non-compliance with procedural requirements as follows.

1.17 Transfer Pricing Regulations (contd.)

1.18 TDS Rates on Payment to NRI

15

A. Director Related Forms1 Application for DIN DIR-3 Any Time2 Intimation of change in particulars of Director

DIR-6 30 Daysto be given to the Central Government3 Appointment of Directors and key managerial DIR-12 30 Dayspersonnel and changes among them4 Return of appointment of MD/WTD/Manager MR-1 60 Days5 Notice of resignation of a director to the Registrar DIR-11 30 Days6 Application for surrender of

DIR-5 Any timeDirector Identification NumberB. Auditor Related Forms1 Notice of appointment of auditor by the company ADT-1 15 Days2 Application for removal of auditor(s) from

ADT-2 30 Dayshis/their office before expiry of term3 Notice of Resignation by the Auditor ADT-3 30 DaysC. Annual Filing Forms1 Form for filing annual return by a company MGT-7 60 Days2 Form for filing Financial Statement and

AOC-4 30 Daysother documents with the registrar

D. OPC Related Forms1 Nominee consent form INC-3 30 Days2 Change in Member/Nominee INC-4 30 Days3 Intimation of exceeding threshold INC-5 60 Days

No. Events Form No. Due Date

2 Incorporation Related Forms: .1

2. COMPANIES ACT

Application for DIN DIR-3 DIR-3Application for Reservation of Name INC-1 INC-1Application for Incorporation of Company INC-7 INC-2Nominee consent form — INC-3Form for submission of documents with the registrar GNL-2 GNL-2Notice of Situation or Change of Situation of

INC-22 INC-22Registered OfficeAppointment of Directors and key managerial

DIR-12 DIR-12personnel and changes among them

Form No.Purpose Public & Private

Companies OPC

2 2 Other Important Forms: .

16

2.3 Registration Fees Payable to ROC:

E. Other Forms15 Days 30 Days

(For (For1 Notice of Situation or Change of INC-22situation of registered office Existing New

Co.) Co.)2 Application to Regional Director for

approval to shift the Registered Officefrom one state to another state or from INC-23 30 Days jurisdiction of one Registrar to another Registrar within the same State

3 Notice to Registrar of any alteration of SH-7 30 Daysshare capital

4 Application for registration of creation, modification of charge (other than those CHG-1 30 Days related to debentures)

5 Particulars for satisfaction of CHG-4 30 Dayscharge thereof

6 Filing of Resolutions and MGT-14 30 Daysagreements to the Registrar

No. Events Form No. Due Date

2 2 Other Important Forms (contd.) .

Less than ` 1,00,000 5,000 2000

From ̀ 1,00,001 to ` 5,000 + ̀ 400 for every ` 2000

` 5,00,000 enhanced ̀ 10,000 or part of it.

From ̀ 5,00,001 to ` 21,000 + ̀ 300 for every` 2000

` 10,00,000 enhanced ̀ 10,000 or part of it.

` 2000 + ̀ 200 forFrom ̀ 10,00,000 to ` 36,000 + ̀ 300 for every every enhanced ` 50,00,000 enhanced ̀ 10,000 or part of it.

` 10,000 or part of it.

From ̀ 50,00,001 to ` 1,56,000 + ̀ 100 for every-

` 1 Crore enhanced ̀ 10,000 or part of it.

` 2,06,000 + ̀ 75 for everyFrom Above ̀ 1 Crore -enhanced ̀ 10,000 or part of it.

Other than OPCs andAuthorised Share Capital

Small Companies CompaniesOPC and Small

` `

I am thankful for the taxes I pay because it means that I'm employed. ~Nancie J. Carmody

17

2.4 Additional Fee on Late Filing of Documents:

2.5 Depreciation Chart

Upto 15 days 1 -

> 15 days and 3 Upto2upto 30 days (> 30 days) 6 months 2.5%

> 30 days and4 6upto 60 days

> 60 days and6 9upto 90 days

> 90 days and10 12upto 180 days

> 180 days and > 6 months 3%12 20upto 270 days

Ref. to Second > 270 Days 30provision of

section 403(1)

a.) Delay in filing of forms other thanincrease in authorized capital increase in Authorized Capital

No. of times of Normal Filing Fee* % p.m. on thePeriod of Delays DelaySatisfaction fees payable*Othersof Charge

b.) Delay in filing of forms for

* In addition to normal fees

1 Factory building - Non Residential 10 302 Other Building:-

(a) Building RCC frame structure 10 60(b) Building other than RCC frame structure 10 30

2 Furniture & Fixture (General) 10 103 Plant & Machinery, Office Machinery (General) 15 154 Motor Cycles, scooters & other mopeds 15 105 Motor buses, motor lorries and motor cars 30 8other than those used on hire6 Computer and data processing units:-

(a) Servers and networks 60 6(b) End user devices such as 60 3desktops, laptops, printers etc.

Companies ActI. Tax

No. Block of Assets Useful lifeWDV%

(Years)

(b)

1. In case of double shift depreciation will be increased by 50% and in case of triple shift depreciation will be increased by 100% for that period for the single shift asset.

2. For Amortisation of Intangible Assets as per Companies Act 2013, the provisions of accounting standards shall apply except in case of BOOT and BOT projects.

18

( in Lacs)`

3. LIMITED LIABILITY PARTNERSHIP (LLP)

Upto ` 100,000 500/- 50/-

` 100,000 to ` 500,000 ` 2000/- ` 100/-

` 500,000 to ` 1,000,000 ` 4000/- ` 150/-

` ` `

` `

More than 1,000,000 5000/- 200/

Amount of Contribution Registration

Fee (A) Documents filling Fee

(B)

3.3 Filing Fees:

Purpose Form No. Fee

3 1 Incorporation Related Forms: .

Events Form No. Due date Fee

3.2 Other Important Forms:

19

Change in LLP 3 30 days Refer 3.3 (B)Agreement

Change in name/address/designation of designatedPartner/ Partner and 4 30 days ` 50/-consent to become a partner /designated partner

Notice for change of Name 5 30 days of Compliance Refer 3.3 (B)

30 days from end of Statement of Account & 8 six month from Refer 3.3 (B)Solvency closure of F.Y.

Annual Return of Limited 60 days from the 11 Refer 3.3 (B)Liability Partnership (LLP) end of the F.Y

Intimating other address for12 30 Days Refer 3.3 (B)service of documents

Change of 15 30 Days Refer 3.3 (B)place of registered office

Application for DPIN DIR-3 ` 500

Application for Reservation or Change of Name 1 ` 200

Incorporation Document and subscriber's statement 2 Refer 3.3 (A)

LLP Agreement and changes, if any, made therein 3 Refer 3.3 (B)

Consent of all Partners 4 Refer 3.3 (B)

4 1. Basic Exemption Limit

` 10 lacs is available to small Service Provider.

* The rate of Service Tax is 14.5% up to 31st May, 2016.

All services will now attract service tax except services specified in the Negative List and Exemption Notifications.

Rate of Service Tax 15%*

4 3 Payment of Service Tax using challan GAR-7.

Due Date E-payment*Manual

S.N. Assessee Frequency

(i) Individual/Partnership firms/ Quarterly succeeding succeedingLLP/ Proprietorship month month

(ii) Assesses other than 5th of 6th of Individual/ Monthly succeeding succeedingPartnership firms/month month LLP/ Proprietorship

5th of 6th of

*Note : 1. For the period ended March, due date is 31st March

2. E-Payment of the Service Tax is mandatory for ALL assesses w.e.f. 01-10-2014.

3. E-Payment will be considered valid up to 8:00 pm of the respective day.

4. If the Assistant Commissioner or the deputy commissioner of central excise, as the case may be, having jurisdiction, may for reasons to be recorded in writing, allow the assesses to deposit the ST by any mode other than internet banking.

4. SERVICE TAX

Form Time Period

4 2 Service Tax Registration Forms:.

ST-1

ST-2

Description

Within 30 days from the levy of service tax is brought into force or starting of business or when taxable turnover exceeds ̀ 9 lakh

Within 2 days from the date of application otherwise it shall be deemed to have been granted

To be Submitted By

Assesses

Issued By Service Tax

Dept.

Service Tax Registration Application

Service Tax RegistrationCertificate

20

(a) Fees for Late Filling of Return: (Rule 7C)

Delay upto 15 Days ` 500

Delay >15 days to < 30 days ` 1,000

` 1,000 + ` 100 for each day Delay > 30 days

but not exceeding ` 20,000

(i) Penalty 100% of Service Tax

(ii) Penalty Nil, if tax and interest paid within 30 days of service of SCN(b) Failure to pay Service Tax

(iii) Penalty 25% of penalty imposed (Sec 76).under an order u/s. 73(2), if the

w.e.f. 14.5.2015 service tax, interest and such reduced penalty is paid within 30 days of receipt of the order*.

(c) Default in obtaining Service TaxUp to ` 10,000

Registration Certificate.

(d) Non-maintenance of books of` 10,000

accounts and documents

(e) Failure to pay Tax Electronically` 10,000

when required

Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due

Other than in situations covered above.

1st April to 30th September 25th October

1st October to 31st March 25th April

Rate of Interest

4.4 Interest on delayed payment of service tax :

4.5 Half yearly Return in Form ST-3

Situation

Period

Note : 3% concession in interest rate for assesses having turnover up to ` 60 Lacs.

Amount of Penalty

4 Penalties: .6

Nature of Default

Due Date

* The maximum penalty imposable u/s. 76 is up to 10% of the tax. Hence the maximum penalty payable in such cases would be 2.5% of Service Tax i.e. (25% of 10%)

24% p.a.

15% p.a.

21

Note : For the period ended March, due date is 31st March1 E-Payment of the Tax is mandatory for ALL assessees w.e.f.

01-10-2014.2. E-Payment will be considered valid up to 8:00 pm of the respective day.

(i) SSI units Quarterly 6th of succeeding month (note)

(ii) Other than SSI units Monthly 6th of succeeding month (note)

Due Date

5.2 Payment of Excise using Challan GAR-7:

Assessee FrequencyS.N.

From 01-03-2015 12.5%

5.1 Rate of Basic Excise Duty:

Rate of Excise

ER-1 Manufacturers who are not entitled to file ER-2 orER-3 returns next month

ER-2 100% Export Oriented Units removing goods to 10th of domestic tariff area next month

ER-3 Manufacturers availing exemption on the basis of20th of

value of their annual clearance, manufacturer of next month to

processed yarn, unprocessed fabrics falling underCompleted

chapters 50 through 55, 58 or 60 of the C.E.Tariff quarter

or manufacturers of readymade garments.

ER-7 All manufactures should submit Annual installed 30th April next tocapacity statement completed year

Assessee who paid duty of excise more than ` 1 crore in the precedingyear is also required to file following Returns:

ER-4 Require to submit Annual Financial Information 30th Nov. of Statement. next year

ER-5 Information relating to principal inputs used in the 30th April ofmanufacture of finished goods next year

ER-6 Monthly return of receipt & consumption of 10th ofPrincipal inputs next month

10th of

No. Due Date For Filing

5 3 Various Forms for Returns: .

Who has to File

5. EXCISE ACT

22

6. OTHER COMPLIANCES:

23

Do not go where the path may lead, go instead where there

is no path and leave a trail.- Ralph Emerson

concession + retaining12% of Basic + DA +

allowance subject to end of monthPF food concession +maximum ` 15,000 p.m. ( plus 5 daysretaining allowance

(plus Admin charges : 0.85% of grace )of Basic + DA)

21st day afterESIC 1.75% of Wages 4.75% of wagesend of month

0.5% of total wages 15th day aftersubject to maximum end of month

EDLI -----------` 15,000 p.m. + Admin (plus 5 days

charges @ 0.01% of grace)

12% of Basic +DA + food15th day after

Type PaymentDue Date

Employee’ Contribution

6 1 PF & ESIC:.

Employer’ Contribution

6 XBRL:.2

(A) Financial Statements to be filed in XBRL Form for

1. All companies listed in India and their subsidiaries, including overseas subsidiaries;

2. All companies having a paid up capital of ` 5 Crores and above or a Turnover of ` 100 crores or more.

(B) Following Companies are exempted from XBRL:-

ØBanking Companies and their subsidiaries

ØInsurance Companies and their subsidiaries

ØPower Sector Companies and their subsidiaries

ØNon-banking Financial Companies (NBFC) and their subsidiaries

24

Income Tax :

Official Website http://www.incometaxindia.gov.in

e-Filling http://incometaxindiaefilling.gov.in

Services To Tax payers http://www.incometaxindiapr.gov.in

Tax information Network http://www.tin-nsdl.com

ITAT http://www.itat.nic.in

Service Tax:

Official Web Site http://www.servicetax.gov.in

e - Filling http://www.aces.gov.in

Gujarat VAT http://www.commercialtax.gujarat.gov.in

CBEC Official Web Site http://www.cbec.gov.in

XBRL:

International http://www.xbrl.org

India http://www.xbrl.org/in

MCA: http://www.mca.gov.in

LLP: http://.llp.gov.in

ICAI: http://www.icai.org

SEBI: http://www.sebi.gov.in

C&AG of India: http://www.cag.gov.in

RBI: http://www.rbi.org.in/home.aspx

EPF http://www.epfindia.com

ICSI http://www.icsi.edu

NJP Advisors Blog http://www.njpadvisors.com/blog

7. USEFUL WEBSITES:

Government's view of the economy could be summed up in

a few short phrases: If it moves, tax it. If it keeps moving,

regulate it. And if it stops moving, subsidize it.

- Ronald Reagan

8. COMPLIANCE CALENDER

April - 30 15 21 25

May 5 7 15 31 21

June 5 7 15 15 21

July 5 7 15 31 21 31

Aug 5 7 15 21

Sept 5 7 15 15 21 30

Oct 5 7 15 31 21 25

Nov 5 7 15 21 30#

Dec 5 7 15 15 21

Jan 5 7 15 31 21

Feb 5 7 15 21

March 5/31 7 15 15/31 21

Month

Payment of TDS

Return(Quarterly)

Payment of

ESIC

Filling of Return

Service Tax*/

Excise TDS PF

AdvancePayment ofIncome Tax

ServiceTax

Income Tax

* For Service Tax, if an entity makes online payment, due date is 6 instead of 5.# Submission of Transfer Pricing Report

Just when you think it can't get any worse, it can. And when you think it can't get any better, it can.

-Nicholas Sparks

Taxation is the price which civilized communities pay for the opportunity of remaining civilized.

~Albert Bushnell Hart.

25

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